State updates that may affect you.

POWER Act and contracts from handbooks explained

The Court of Appeals of the State of Oregon recently clarified in Dailey v. University of Portland that under Oregon law, handbooks can form contracts unless there is a clear disclaimer. The court emphasized that conspicuous and unambiguous disclaimers can prevent statements in handbooks from becoming contractual statements.

Quicks Hits

• In Dailey v. University of Portland, the Court of Appeals of the State of Oregon addressed the enforceability of handbook provisions as a "contract."
• Generally, Oregon law recognizes that handbook provisions can form a contract unless effectively disclaimed.
• The court emphasized that employers must ensure disclaimers are clear, prominently placed.

The Court's Decision

The appeals court agreed with the university that clear and conspicuous disclaimers can prevent handbook provisions from forming a contract. The court, however, found that while the general student and nursing school handbook's disclaimers were clear and conspicuous, the university's disclaimer on its bulletin was "tucked away in a mousehole."

Key Takeaways for Employers

• Although the case involved a student rather than an employee, the law applies equally in the employment context.
• Employers may consider placing clear and conspicuous disclaimers in their employee handbooks, personnel policies, and intranet-based policies to ensure that such documents do not inadvertently become enforceable employment contracts.

Oregon Court Of Appeals Holds That Handbooks Can Form Contracts Unless Clearly Disclaimed - Employee Rights/ Labour Relations - United States

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Commentary by: Raylea Stelmach

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